Good education is considered a gateway to a great career. But the cost of higher education often poses a barrier.

In order to help students continue their education without worrying about funds, a number of lenders today provide education loans. 

Getting an education loan in India that covers all expenses like tuition fees, accommodation expenses, etc. is not that difficult.

Salient Features of Education Loans

Here are some education loan details that are common across most lending institutions -

Education loans can go up to Rs.1 Crore based on the needs of the student. 

While public sector banks lend collateral-free education loans, many other private sector banks and education loan lenders give collateral-free loans up to Rs.40 Lakh. 

However, the education loan eligibility will depend on both the lender and the borrower.

Education loan interest rates are considerably low as it is categorized under the Priority Sector. The interest rate can range from 8.20% - 15.20% depending on the details of the applicant and lender credit policies.

You can get the best education loan in India at affordable interest rates if you have a high credit score. 

While the student who needs the loan need not have a credit score, the guardian or parent who will be the co-applicant will definitely need to. 

As is the case with most loans, the higher the credit score, the better the loan’s terms and conditions.

Applying for an education loan in India can also bring you tax benefits under Section 80C of the Income Tax Act. 

The interest component of the loan is tax free and this is a huge benefit for working professionals who are looking to save some tax.

The actual tenure of the loan starts after the completion of the course or getting a job, whichever comes first. In general, education loans have longer repayment tenures that can extend up to 5-7 years after that.

When you apply for an education loan in India, you don’t have to pay any EMI during the course duration. It is known as the moratorium period, and the loan needs to be repaid only post the moratorium period.

Other Features of Education Loans

Education loans have many positive features. Some of them are listed here - 

What is the Minimum and the Maximum Amount of Loan that can be Availed?

The final decision related to the loan amount is taken by the lender. The factors which affect the loan amount are -

Amounts can vary from lakhs to crores depending on these factors.

Education Loan Interest Rate and Other Charges

Just like the loan amount, the interest rate is also dependent on multiple factors. Some of them are - 

Based on all of these factors, the borrower can negotiate an interest rate that is comfortable for them. Generally, education loan interest rates range from 8.20% to 15.20%. 

Loans from public sector banks tend to be cheaper as compared to private sector lenders. At the same time, the former lenders tend to be more rigid on maximum amounts and other conditions as compared to the latter.

Education Loan Eligibility and Documents Required

Education loan eligibility criteria are very similar to that of any other loan - 

The documents required for an education loan vary depending on the lender but the following are the general documents that are required - 

Collateral & Margin Money Requirement For Education Loan

The conditions for margin money and collateral for an education loan totally depend on the lender. Here is what they mean - 

Margin money is the portion of the cost that is to be brought in by the borrower. In case you want a higher loan amount, you are expected to bring in some portion of the amount as margin money. But lower amounts can be sanctioned without the requirement of margin money.

Collateral is security that is pledged to the lender till the loan is repaid satisfactorily. Collateral could be a third-party guarantee or pledging of assets like real estate, Fixed Deposits, etc. 

If you pledge an asset, you are more likely to get a higher loan amount at a lower interest rate. This reduces the risk of lending you money, which acts in your favor. 

Personal Loans for Higher Education

While education loans are beneficial and sometimes even a necessity, the amount may not be enough or you may need extra funds within a short period of time. In such cases, opting for a personal loan is a great option.

You can get instant personal loans from Rs.5,000 to Rs.10 Lakh from moneyview. The application process is simple and the documentation requirements are minimal as well. 

You also get the loan amount into your bank account within 24 hours of submitting the loan agreement.


Thanks to education loans, higher education doesn’t need to just be a dream for you. You can easily apply for the courses of your choice, either in the country or abroad, without worrying about the funds. 

You can go through the education loans offered by various banks and choose the best education loan in India for you. But if you are looking for a collateral-free instant loan to fund your education requirements, visit the moneyview website or download the loan app.


If you consider education loan interest rates, the State Bank of India has the lowest rates starting from just 8.20% per annum.

Yes, as parents act as co-applicants in the case of most student loans, proof of their income is required to apply.

If you meet the education loan eligibility criteria, it should not be very difficult for you to get an education loan. In fact, if you have already secured a position at a prestigious university, getting a loan will be easier for you.

The criteria to apply for a loan varies vastly depending on the lender. Generally, you need a minimum income of Rs.30,000 per month to be able to apply for an education loan. But other factors also weigh in, income is not the sole criterion to get an education loan.

Yes, you can get the whole amount required for your course, including other expenses as an education loan. But if the amount is higher, having margin money or pledging collateral might make it easier for you to get a loan.


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